Grayscale, a leading crypto investment firm, has submitted a response to the US Securities and Exchange Commission (SEC) in regards to the latter’s opposition of converting its Bitcoin Trust (GBTC) into a spot BTC ETF.

Grayscale argues that the SEC’s claim that the Chicago Mercantile Exchange (CME) provides enough protection against fraud and manipulation in the BTC futures market but not in the spot market is unjustified.

The firm points out that any fraud or manipulation in the spot market would also affect the price of Bitcoin futures.

Additionally, Grayscale’s chief legal officer claims that the SEC’s application of the “significant market test” is arbitrary and that the test is flawed.

Grayscale’s proposal to convert GBTC into a spot ETF is in line with the law and aims to safeguard investors and the public interest.

On another note, Greg King, the CEO of Osprey Fund, has also submitted a proposal for GBTC, offering to decrease the management fee and simplify the fund’s structure, and also planning to pursue a redemption program and list on the New York Stock Exchange (NYSE).